Speaking at a Q&A session at the South by Southwest festival (SXSW) along with Digg founder Kevin Rose he revealed that a new video project was nearly ready to launch very soon. He said, “I wish [SXSW] was a month later because I could unveil the new product,” Hurley said on Saturday. Without offering many details, he said the product is “primarily video-based … and gives flexibility for people to work together and create content,” according to AdWeek.

He insisted that his original baby Youtube was not in his cross-hairs though, saying, “We’re not setting up to [kill YouTube] — now,” as he is looking for a collaboration platform as opposed to video sharing.

The project is still swathed in mystery though as no further details are being revealed. Hurley also spoke about the Google buyout of Youtube for $1.65 billion back in 2006 from the three co-founders Steve Chen, Chad Hurley, and Jawed Karim.

The deal was thrashed oyut over cosy meals at Denny’s in Redwood City, where he and Steve Chen met Google’s Eric Schmidt and Sergey Brin. He also met at the same eatery with Yahoo execs but, “Yahoo didn’t necessarily step up the way Google did. We knew they [Google] were going to give us the support.”

Of course many other websites have tried (and failed) to replicate YouTube’s success, so lets hope Chad has something unique up his sleeve.